LOBOUR LAWS EXAM QUESTIONS AND ANSWERS

Q WHAT IS A CONTRACT IN DOINNG SO EXPLAIN THE ELEMENTS THAT

MAKE A CONTRACT LEGAL AND BINDING
ANSWER
A contract is a binding agreement between two parties that is enforceable by law.

Elements of a Legally Binding Contract

Contract law requires certain elements of a legally binding contract to be

met in order for the agreement to be enforceable. Regardless of the type
of contract, if any of these four elements is not met, the contract may not
be enforceable:

Offer

An offer must be made in a contract. Such an offer may be to exchange

goods or services for something of value, or an offer to act or refrain
from acting in a certain manner. For example, a construction contractor
offers to build a house in exchange for a specified amount of money. An
offer may be made in person, or in writing.

Acceptance

Acceptance is the agreement of the other party to the offer presented. In

most contracts, the method of signaling acceptance is left open. While in
many contracts, both parties add their signatures to demonstrate their
agreement to the terms, others assume an acceptance of the offer to be
made when one or both parties perform their duties under the contract.

Consideration

All parties to any contract must provide the other parties something of
value, which entices the other party to enter into the agreement. The
“something of value” is referred to as “consideration,” and it does not
necessarily need to be money. For example, Paul agrees to give Nancy

1|Page
COMPILED BY MR JONAS MWELWA, 0960792474/0977844624
his above-ground swimming pool in exchange for day-care services in
her home.

Competency

All parties entering into a contract must have a legal capacity, or

competency, to do so. Each must be able to understand his legal liability
and responsibilities under the contract. This prevents someone from
taking advantage of minors and those who are mentally incapacitated, as
these individuals cannot legally enter into an enforceable contract.

Mutuality

Under the doctrine of mutuality, all parties must be willing, and have
intent, to perform their obligations under the contract at the time it is
made. Without mutual intent, neither party would be bound by the
contract. Additionally, mutuality requires any cancellation of a contract
to be agreed to by all parties involved.

Q What is Contract Law AND IN DOIN SO EXPLIAN FIVE

SOURCES OF LAW

Contract law governs the legality of agreements made between two or

more parties when there is an exchange of some sort intended to take
place. In nearly all business transactions, contracts are made. Such
contracts, even if made by a verbal agreement, are legally enforceable,
as an obligation to fulfil the terms of the agreement has been created.
Anytime an individual, business, or other entity agrees to take action, or
to make an exchange or payment for something of value, a contract has
been created. Examples of such agreements in business include bills of
sale, purchase orders, and employment agreements.

2|Page
COMPILED BY MR JONAS MWELWA, 0960792474/0977844624
SOURCES OF LAW

Labour law (Employment law) is the body of laws, administrative rulings, and precedents
which address the legal rights of, and restrictions on, working people and
their organizations. As such, it mediates many aspects of the relationship
b e t w e e n t r a d e unions, employers and employees. I t i s t h e b o d y o f l a w t h a t
g o v e r n s t h e e m p l o y e r - employee relationship, including individual employment contracts,
the application of tort and contract doctrines, and a large group of statutory regulation
on issues such as the right to organize and negotiate collective bargaining agreements,
protection from discrimination, wages and hours, and health and safety.

A constitution is a set of fundamental principles or established precedents according to which a

state or other organization is governed. It is the supreme law of every country, meaning no other
law in the country can undermine the laws stipulated in the constitution, For example, if the
Constitution says there is freedom of speech for all citizens, but the social tradition is for women
not to speak in public, a court will protect the right of any woman to speak in public if she
chooses to do so; the Constitution takes priority over tradition.

Customary- Laws- these are laws that are based on customs of people in certain areas. These
are sets of rules developed through customs, practices and/or usages of Zambian ethnic tribes
and they are accepted by Zambian as binding rules.

Religious Laws- such as Islamic laws- These are few sets of law which apply to Moslems
inhabiting in some African countries and other world countries but they are not applied in its
whole fashion in many African countries as it is in Islamic legal system countries.

Common Law- These are the body of law developed through judgments of the English courts
which made reference to the customs and usage of the English people and then interpreted in
courts. By preservation of courts, they remain applicable (when there is no local law or rule) and
persuasive laws in Zambia through the doctrine of precedents.

Case Law/Court Decisions or judicial precedence: Is the set of existing rulings which have
made new interpretations of law and, therefore, can be cited as precedent. It is another important
source of law in Zambia. These are cases arising from the decision of the High Court and Court
of Appeal.

3|Page
COMPILED BY MR JONAS MWELWA, 0960792474/0977844624
 Q compare and contrast between the contract and tort liability
Answer
Contract Tort

---In its simplest form, contract law imposes --Under tort law, members of a community are expected
duties on parties who enter into an agreement to act reasonably toward everyone else within the
(contractual relationship. Within this agreement, community. Tort law is based on the premise that people
both parties are expected to act reasonably are liable for their actions.
toward one another (referred to as vis-à-vis).
--If someone’s careless actions injure another person,
---If either party breaches their duty to perform they may face consequences—whether their actions were
what is outlined in the contract, contract law aims intentional or accidental. Tort law aims to compensate
to provide damages to the injured party. victims for any injuries or damages suffered by the
Typically, damages are awarded with the intent unreasonable acts of others.
to restore the injured party to where they were
before the breach occurred, or as if the contract
had been performed

SIMILARITIES SIMILARITIES

Very simply, tort laws and contract laws are in place to address a breach of duty that results in an injured
party. In contract law, a breach of duty involves the failure to adhere to what is named in a contract.

In tort law, a breach of duty involves the failure of one party’s duty to not harm another. Both branches of
law provide damages to the victim.

DIFFERENCIES

A distinct difference between contract and tort laws lies in the issue of consent. In contract law, both parties
must enter an agreement knowingly and without coercion.

Each party must consent to the contract and its outcomes. In tort law, the interaction between the parties is
not based on consent. Usually, torts occur by the intrusion of one party to another that results in some type of

4|Page
COMPILED BY MR JONAS MWELWA, 0960792474/0977844624
harm.

Courts will award damages in a contract case to restore the injured party to where they were before the
breach occurred. In a tort case, a court will award damages to compensate the victim for their loss.

Another difference between the two branches of law, is that punitive damages are sometimes awarded in tort
cases, whereas they are rarely awarded in breach of contract cases.

Q2 WHAT ARE THE SIMILARITIES AND DIFFERENCIES BETWEEN AN

INVITATION TO TREAT AND AN OFFER
ANSWER

Definition of Offer

An offer is an expression of a person showing his willingness to another person to do or not to do

something, to obtain his consent on such expression. The acceptance of the offer by such person
may result in a valid contract. An offer must be definite, certain and complete in all respects. It
must be communicated to the party to whom it is made. The offer is legally binding on the
parties. There are following types of offer:

 General offer: The type of offer which is made to the public at large.
 Specific offer: The type of offer made to a particular person.
 Cross offer: When the parties to the contract accept each other’s offer in ignorance of the
original offer, it is known as the cross offer.
 Counter offer: This is another type of offer in which the offeree does not accept the
original offer, but after modifying the terms and conditions accept it, it is termed as a
counter offer.
 Standing offer: An offer which is made to public as a whole as well as it remains open for
a specific period for acceptance it is known as standing offer.

Example:

5|Page
COMPILED BY MR JONAS MWELWA, 0960792474/0977844624
  A tells to B,”I want to sell my motorcycle to you at Rs. 30,000, Will you purchase it?”
 X says to Y,”I want to purchase your car for Rs. 2,00,000, Will you sell it to me?”

Definition of Invitation to offer (treat)

An Invitation to Offer is an act before an offer, in which one person induces another person to
make an offer to him, it is known as invitation to offer. When appropriately responded by the
other party, an invitation to offer results in an offer. It is made to the general public with intent to
receive offers and negotiate the terms on which the contract is created.

The invitation to offer is made to inform the public, the terms and conditions on which a person
is interested in entering into a contract with the other party. Although the former party is not an
offeror as he is not making an offer instead, he is stimulating people to offer him. Therefore, the
acceptance does not amount to a contract, but an offer. When the former party accepts, the offer
made by the other parties, it becomes a contract, which is binding on the parties.

Example:

 Menu card of a restaurant showing the prices of food items.

 Railway timetable on which the train timings and fares are shown.
 Government Tender
 A Company invites application from public to subscribe for its shares.
 Recruitment advertisement inviting application.

Key Differences between Offer and Invitation to Offer (Treat)

The principal points of difference between offer and invitation to offer are as follows:

1. An offer is the final willingness of the party to create legal relations. An invitation to
offer is not the final willingness but the interest of the party to invite public to offer him.

6|Page
COMPILED BY MR JONAS MWELWA, 0960792474/0977844624
 2. An offer is defined in section 2 (a) of the Indian Contract Act, 1872. Conversely, an
invitation to offer is not defined in the Indian Contract Act, 1872.
3. An offer is an essential element to make an agreement between the parties, but an
invitation to offer is not an important element until it becomes an offer.
4. An offer becomes an agreement when accepted. On the other hand, an invitation to offer
becomes an offer when the public responds to it.
5. The main objective of making an offer is to enter into the contract, whereas the main
objective of an invitation to offer is to negotiate the terms on which the contract can be
made.

Conclusion

Now, you are surely not confused between these two. It is also a characteristic of an offer that it
must be distinct from an invitation to offer. An Invitation to offer is a very familiar term as we all
have dined in a restaurant where menu cards show the price list of the concerned food items or
booked a ticket by viewing the railway timetable. Two most famous examples are pamphlets of
pizza’s showing their rates and an auction sale advertisement.

The Offer is quite specific term as it is meant to create legal relations as it is an essential element
for making a contract. The ‘intention’ of the party making it, is the fundamental phenomenon
that differentiates the two terms.

Q3 WHAT IS THE EFFECT OF VITIATING FACTORS TO A CONTRACT (10

MARKS)

ANSWER

A contract can be defined as ‘a promise or set of promises which the law will enforce' (Pollock
Principles of Contract. The agreement will create rights and obligations that may be enforced in
the courts.

MISREPRESENATTION

A misrepresentation is a false statement of fact or law which induces the other party to enter in to
the agreement. Generally speaking such statements have to be made before the contract is
entered in to. Thus the requirements of an action for misrepresentation are that it must purport to
be statement of fact or law, it must have induced the other party to enter the contract and it must
have been a false statement.

7|Page
COMPILED BY MR JONAS MWELWA, 0960792474/0977844624
MISTAKE

Mistakes can be split in to those mistakes which nullify the agreement (common mistake) and
those which negate the agreement (mutual mistake)

At common law, a common mistake will nullify the agreement where the mistake is to the
existence of the subject matter (res extincta), a party buys property which he already owns( res
sua) or if there has been a mistake as to the quality which renders the contract impossible to
perform or if it is rendered radically different.

Mutual mistake where the parties are at across purposes but neither is aware of this prevents the
contract from arising as there is no consensus ad idem.

Unilateral mistake where one party is aware of the others mistake will render a contract void, if it
relates to the terms of the contract.

Unilateral mistake as to identity will render a contract void if the identity was of fundamental
importance to the parties and the other party was aware of the mistake and the importance of it.

In relation to contracts made in person the courts are not easily convince that a mistake as to
identity should render the contract void as parties are expected to make reasonable enquiries as
to identity.

Equity no longer provided the remedy of rescission for mistakes which are not effective at
common law to render the contract void, but any intervene via refusal of a grant of specific
performance or rectification.

A person who mistakenly signs a contract may plead non-est factum, and have the contract set
aside if he proves that the there was a radical difference in what was signed and what he thought
he was signing and he was not careless in signing the document.

8|Page
COMPILED BY MR JONAS MWELWA, 0960792474/0977844624
.DURESS

The parties must enter in to a contract willingly if it is to be enforceable however there are
situations where this may be in question. This is the case where Duress or Undue Influence may
have been exerted over one of the contracting parties.

Duress was originally based on threats of physical violence, however the modern doctrine
requires that the victim be subjected to pressure amounting to compulsion of the will and that the
pressure was illegitimate, taking in to account the nature and of the threat. The modern doctrine
manifests itself as economic duress covers situations where there are more subliminal threats
rather than overt threats of physical violence.

A threat to commit a lawful act can sometimes amount to unlawful duress.

In relation to compulsion of the victim cases on economic duress suggest that the court should
ask;

Did the victim protest?

Was there an alternative route available to the victim?

Was the victim independently advised?

Did the victim take steps to avoid the agreement after entering in to it?

Duress renders a contract voidable as opposed to void and the pastry subject to the duress can
rescind the contract unless there has been some affirmation of the contract after the duress has
been lifted.

Undue INFLUENCE
Equity recognizes that contracts may be set aside for undue influence.

Undue influence may be actual or presumed.

If undue influence is to be presumed there must be a relationship which gives rise to the
presumption and something about the transaction which requires an explanation.

9|Page
COMPILED BY MR JONAS MWELWA, 0960792474/0977844624
Undue influence will be presumed irrefutably where certain relationships exist. Examples
include solicitor/client, doctor/patient, and parent/child. A rebuttable presumption will apply in
other relationships if it can be shown one party dominated the other.

Where a loan is secured by a person who is not in a commercial arrangement with the debtor, the
lender is put on notice that undue influence may be presumed. The contract of security will in
such a situation may be set aside if there has been any undue influence or misrepresentation by
the debtor, unless the lender has made sure that the person providing the security has received
independent legal advice before entering in to the contract. CCA 1974 provides protection in
relation to extortionate credit agreements.

The remedy for undue influence is rescission however the remedy is lost if restitution is
impossible, the contract has been affirmed, there has been delay in seeking the remedy or where
third party rights may be affected.

 ILLEGALITY

Public policy dictates that illegal contracts are unenforceable and the courts should be vigilant
not to enforce any contract with an illegal purpose.

Thus contracts such as those tending to corruption in public life, promoting sexual immorality,
prejudicial to the administration of justice, trading with an enemy in war time, for future
separation, in restraint of marriage, marriage brokerages and contracts attempting to oust the
jurisdiction of the courts will all be illegal and unenforceable.

Q4 CONSIDERATION MAY TAKE THE FORM OF ECUTORY, EXCUTED, AND

PAST. DISICUSS THESE TERMS.

Answers

Executory consideration (6 marks)

10 | P a g e
COMPILED BY MR JONAS MWELWA, 0960792474/0977844624
This is where there is an exchange of promises to perform acts in future, for example in a
bilateral contract for the supply of goods where by Mr A promises to deliver to Mr B goods at a
future date and Mr B promises to pay on delivery. If Mr A does not deliver them, this is a breach
of contract and Mr B can sue. If Mr A delivers the goods then his consideration then becomes
executed.

Executed consideration (6 marks)

This is the one in which one party make a promise in exchange for the an act by the other party,
when the act is completed, it is executed consideration, for example in a unilateral contract
where A offers k500 reward for the return of her lost handbag, if B finds the bag and returns the
bag then B’s consideration is executed.

Past consideration (8 marks)

This is an act done before a contract is made. The rule is that past consideration is no
consideration at all and it’s not valid and cannot be used to sue on a contract. For example A
gives B a lift home in his car, on arrival B promises to give A k50 towards petrol later. A cannot
enforce this promise as consideration, by giving B a lift, is past.

WHAT IS THE DOCTRINE OF VICARIOUS LIABILITY (10 MARKS)

ANSWER

Vicarious liability is a legal doctrine that assigns liability for an injury to a person who did not
cause the injury but has particular legal relationship to the person who did act negligently. It is
also referred to as imputed negligence. For example the relationship that exists between a parent
and child which make the parent liable for all the wrongs of a child. This doctrine is based on the
employer-employee relationship and it makes the employer liable for the wrong doings of the
employee who have acted negligently but that employee is within the employment scope. The

11 | P a g e
COMPILED BY MR JONAS MWELWA, 0960792474/0977844624
employer is charged with legal responsibilities for the negligence of the employee because the
employee is held to be an agent of the employer. For example if the employee is arrested by the
police for over speeding while taking his boss who is late for the flight to the airport, this will
make the boss or the employer liable for all the charges imposed on the employee, for the wrong
doing was done in the course of trying to ensure that his boss gets to the airport on time.

DISTINGUISH BETWEEN UNFAIR AND WRONGFULL DISMISSAL (20 MARKS)

ANSWER

A dismissal is when an employer fire an employee from employment

UNFAIR DISMISSAL

A dismissal will be considered unfair if;

The reason for a dismissal does not come under the scope of one of the potentially five fair
reasons for dismissal such as:

- Employment misconduct such as theft

- Employee incapability to work such as long term sickness

- Redundancy for example company closure

- Employee handed a long prison sentence

WRONGFUL DISMISSAL

A wrongful dismissal is a dismissal in breach of contract. Common example would be where the
employer has dismissed an employee but have not provided the notices as laid down in the
contract of employment, such as verbal warnings, written warning. If the employer act in

12 | P a g e
COMPILED BY MR JONAS MWELWA, 0960792474/0977844624
violation of any contractual obligations, the employee can sue and make claims in the courts of
law. The damages will reflect the pay and benefits the employee would have received had the
dismissal been in line with the contract’s terms, regardless of the days an employee has worked
for the company.

EXPLAIN THE PURPOSE OF THE EMPLOYMENT ACT 268, THE POWERS

IMPOSED UPON THE LABOUR OFFICER TO DO.

ASNWER

- To enter freely at any reasonable time during the day or night any workplace
where he/she have reasonable cause to believe that people are being employed
and inspect such workplace.

- To enter by day any premises in or nder to carry out an examination in order to

see and know if the provisions of this Act are being complied with.

- To interrogate whether alone or in the presence of witnesses any employer,

employee or casual employee on matters concerning the application of any of the
provision of this Act and question any other person believed to have useful
information.

- To request the production on any of the documents believed to contain provisions

of this Act and how they are applied.

- To enforce the posting of notices in such place in such manner as may be

prescribed by this Act.

13 | P a g e
COMPILED BY MR JONAS MWELWA, 0960792474/0977844624
 - The labour officer shall notify the employer or the employer’s representative of
any inspections or visit, unless the labour officer have reasons to believe that such
notifications may compromise things.

Q BRIEFLY EXPLAIN THE MAIN FUNCTIONS OF NAPSA

ANSWER

- To collect contribution income

- To invest contribution income

- To distribute benefits when they fall due

- To prosecute employers who fail to pay contributions to the plan (empowered by

government)

Q DISCUSS FIVE FUNCTIONS OF THE ZAMBIA INSTITUTE OF HUMAN

RESOURCES MANAGEMENT

ANSWER

- To train individuals involved in human resources management

- To raise the standards of human resources management as a means of raising

productivity and efficiency in organisations

- To carry out a research on issues related to human resources management in order

to develop human resources in Zambia

- To publish information of services interests of the institution

- To maintain close contact with technical colleges, universities, government

departments among others, in order to improve the quality of human resources
management

14 | P a g e
COMPILED BY MR JONAS MWELWA, 0960792474/0977844624
 - To take proper actions of all matters affecting duties and responsibilities of its
members.

Q UNTLINE THE CONTENTS OF A WRITTEN CONTRACT OF SERVICE.

ANSWER

- The names of the employer and the employee

- The name of the business in which the employee is to be employed
- The place of engagement
- The date of commencement and the duration of the contract of service
- The geographical place on which the contract is to be performed
- The wage to be paid, any food to be provided or any money equivalent of any
such food
- Any information on whether the salary will be paid by the employer to the
employee on monthly basis or at a shorter time
- The nature of employment, working hours and tasks where applicable must be
made clear to the employee
- In case of the contract of Foreign Service entered by the employment agency on
behalf of the employer. The employee must be provided with all necessities to
proceed to the place of work.

Q EXPLAIN WHAT A MINIMUM WAGE IS ACCORDING TO THE MINIMUM

WAGE AND CONDITIONS OF EMPLOYMENT ACT BY OUNTLING WHAT IT
COVERS

ANSWER

Minimum wage is the minimum amount of compensation an employee must receive for
performing labour. Minimum wages are typically established by legislation of the government.

15 | P a g e
COMPILED BY MR JONAS MWELWA, 0960792474/0977844624
As such it is illegal to pay an employee less than the minimum wage. It is minimum because it
covers only, lunch, transport, basic pay and housing allowance.

Q BRIEFLY EXPLAIN THE MAIN OBJECTIVES OF THE WORKERS

COMPENSAYTION FUND AND CENTRAL BOARD

ANSWER

- Its main objective is to compensate workers for disabilities suffered or diseases

contracted during the course of employment
- To provide payments of compensation to the dependents of workers who die as a
result of accidents or occupational related diseases during the course of work
- To invest any surplus funds to generate additional income to ensure growth of the
fund and meet any contingent liabilities

Q DISCUSS THE FOUR (4) TEST THE COURTS OF LAW WOULD APPLY TO SHOW
OR PROVE THE EXISTANCE OF A CONTRACT OF EMPLOYMENT

ANSWER

- CONTROL TEST- the greater the extent to which a person is under the
discretional control of another, the more likely he/she is to be an employee
- INTEGRATED TEST- if the person is doing any work that is an integral part of
the business, then that person is likely to be an employee
- MUTUALITY OF OBLIGATION TEST- this is referred to the obligation of an
employer to provide work and pay for it, and the obligation of the employee to
personally do the work
- MULTIPLE TEST- this test takes into account, control test and integration test
as well as many other relevant test like remuneration, supply of uniform.

Q EXPLAIN ANY FIVE DUTIES OF AN EMPLOYEE

ANSWER

- Personal service – the employee must not allow others to his scope of work
- Indemnify – indemnifying the employer where he has suffered loss due to
wrongful employee act

16 | P a g e
COMPILED BY MR JONAS MWELWA, 0960792474/0977844624
 - Misconduct- the employee must not misconduct himself
- Loyalty and good faith
- Obedience- obeying lawful and reasonable orders
- Giving proper notice of termination of his service

Q DISCUSS THE IMPLICATION OF EMPLOYING SOMEONE UNDER A

CONTRACT OF SERVICE RATHER THAN A CONTRACT FOR SERVICES

ANSWER

It implies the following;

- Social security- benefit entitlement

- Employment protection- in respect to minimum period of notice, compensation
for redundancy
- Taxation- an employer will be deducting income tax
- Vicarious liability- an employer is responsible for the torts of an employee
- Employer’s bankrupt – an employee becomes a creditor if a company goes into
liquidation

Q DISCUSS THE NATURE OF CONTRACTS OF SERVICE THAT REQUIRE BEING

IN WRITING

ANSWER

- When a contract is made for a period exceeding six months

- If a contract is of foreign service
- If the tasks to be performed is expected to be completed within six months.

Q BRIEFLY EXPLIAN FOUR CLASSES OF EMPLOYEES WHO ARE EXEMPTED

FROM NAPSA MEMEBERSHIP

ANSWER

- Non Zambians employed by international organisations or those that enjoy

diplomatic status

17 | P a g e
COMPILED BY MR JONAS MWELWA, 0960792474/0977844624
 - All the workers aged 55 years and above are exempted because they are above
retirement age according to the prevailing statutory requirement. Similarly, it is
not legal in Zambia to employ workers below the age of 16 as they are minors
- Workers earning below k15.00 are exempted from NAPSA
- Members of the armed forces are equally exempted, but it should be noted that
civilians engaged in the Zambia all the armed forces are eligible members of
NAPSA

Q WHAT KIND OF BENEFITS DOES NAPSA PROVIDE TO ITS MEMBERS

ANSWER

INVALIDITY BENEFITS
Any registered member with a minimum of 60 months (5 years) of contributions and has become
disabled to an extent that they can no longer work (as determined by a medical board), is
eligible for invalidity pension provided they have 12 contributions within 36 months of
becoming invalid. A registered member with less than 12 contributions within 36 months of
becoming invalid or with less than 60 months of contributions is eligible for invalidity lump sum.

SURVIVOR’S BENEFITS
If a member passes away, their spouse(s), biological and legally adopted children are eligible to
receive a survivor’s lump sum. If a retirement or invalidity pensioner passes away, their
spouse(s), biological and legally adopted children are eligible to receive a survivor’s pension.

FUNERAL GRANT
If a registered member passes away, NAPSA provides a funeral grant to help cover the costs of
the funeral. The member must have made at least 12 monthly contributions during the last
36 months of their life.
In the event that a retirement or invalidity pensioner passes away, the funeral grant is paid
whether the member made at least 12 monthly contributions during the last 36 months of their
life or not.

RETIREMENT BENEFITS

18 | P a g e
COMPILED BY MR JONAS MWELWA, 0960792474/0977844624
Following the recent assent of the National Pension Scheme Amendment Act No. 7 of 2015 on
14th August 2015, pensionable age for members of NAPSA was revised as follows:
· Early retirement age – previously 50 years, now 55 years
· Normal retirement age – previously 55 years, now 60 years
· Late retirement age – 65 years
Members who joined NAPSA after 14th August 2015 can claim their benefits at 55 (Early
retirement pension only), 60 or 65 years of age, while members who joined NAPSA before
14th August 2015 can claim their benefits at 50 (Early retirement pension only) and 55 years
or at 60 or 65 years of age.

Q EXPLAIN THE DIFFERENCE BETWEEN A CONTRACT OF SERVICE AND A

CONTRACT FOR SERVICE
ANSWER
A contract is a binding agreement between two parties that is enforceable by law.

A contract of service or a contract for employment

A contract of employment is a binding agreement between the employer and the employee. In
this contract the following are observed;
- Usually have a great deal of consistency on a day to day basis
- The employee usually works for one employer rather than working for multiple
companies at the same time
- The employee also usually work from the same lactation such as an office at a
company
- The employee also depends on the company for a safe working environment, if
the employer violets any of the country’s labour laws, the employee is free to file
a complaint or a lawsuit.
- The employee is entitled to a holiday pay
- The employee is entitled to medical benefits from the company
- The employee can collect compensation if they get injured on the job
- The employee is also entitled to launch pay or allowance

19 | P a g e
COMPILED BY MR JONAS MWELWA, 0960792474/0977844624
 - The employee is entitled to a full leave pay
- Female employees are also entitled to maternal leave and full pay
- Employees are also entitled to a pension or benefits if the company goes into
liquidation
A contract for service
A contract for service is a binding agreement between the employer and an independent
contractor, and the following is observed;
- Contractors tend to work anywhere and as they often please
- They might have their own office that’s not connected to the employer such as
co-working space or an at home office
- They work independently without constant feedback or oversight
- If the employer is not satisfied with the contractor’s work , they will simply end
the contract
- They are not entitled to leave pay
- They are not entitled to a pension, however if the company goes into liquidation
they are also paid for the services they rendered
- They are not entitled to launch allowance
- They are not entitled to medical pay

20 | P a g e
COMPILED BY MR JONAS MWELWA, 0960792474/0977844624